Salesforce financial results center: FY2020
Salesforce has continued its stellar financial performance by announcing record second quarter fiscal 2020 results.
Following a strong second quarter, Salesforce has again raised its FY2020 revenue guidance, this time from $16.75 billion to $16.90 billion. And it’s no wonder when you look at the numbers they’ve put up.
The tech giant has posted a second quarter revenue of $4.0 billion, up 22% year-over year. It also has a current remaining performance obligation of approximately $25.3 billion, up 20% year-over-year.
Salesforce Chairman and co-CEO Marc Benioff is understandably delighted with the company’s consistently impressive financial results.
“Following an outstanding quarter, we’re raising our FY20 revenue guidance to $16.9 billion at the high-end of the range,” said Benioff. “With our Customer 360 vision, Einstein AI and the millions of Trailblazers innovating on our platform, Salesforce has never been better positioned for the future.”
Salesforce’s other co-CEO, Keith Block, echoed this sentiment. “An enormous wave of digital transformation is sweeping across every industry, and major brands, like FedEx, AXA and Unicredit, turned to Salesforce in the quarter to propel their growth,” explained Block. “The trust our customers have in us to drive their digital transformations is reflected in our strong quarterly results across our clouds and regions.”
Director, Mason Frank International
“Every day we connect hundreds of Salesforce professionals with businesses utilizing the company’s products,” said Andy Mason, Director of Mason Frank.
“It’s encouraging to see Salesforce’s continuing growth and dominance in the CRM market space. To be aligned with a company that continues to scale at pace, while investing in R&D and innovating is extremely exciting, especially as Salesforce is still yet to fully realize its potential in the technology sector.”
Here are Salesforce’s second quarter fiscal 2020 results in detail:
Revenue: Total second quarter revenue was $4.0 billion, an increase of 22% year-over-year, and 23% in constant currency. Subscription and support revenues were $3.75 billion, an increase of 22% year-over-year. Professional services and other revenues were $252 million, an increase of 14% year-over-year.
Earnings per Share: Second quarter GAAP diluted earnings per share was $0.11, and non-GAAP diluted earnings per share was $0.66. GAAP and non-GAAP diluted earnings per share were negatively impacted by the loss on the settlement of the Salesforce.org reseller agreement by $0.16. Mark-to-market accounting of the company’s strategic investments, required by ASU 2016-01, benefited GAAP diluted earnings per share by $0.10 based on the US tax rate of 25% and non-GAAP diluted earnings per share by $0.11 based on a non-GAAP tax rate of 22.5%.
Cash: Cash generated from operations for the second quarter was $436 million, a decrease of 5% year-over-year. Total cash, cash equivalents and marketable securities ended the second quarter at $6.04 billion.
Remaining Performance Obligation: Remaining performance obligation ended the second quarter at approximately $25.3 billion, an increase of 20% year-over-year. This includes approximately $350 million related to the business combination with Salesforce.org. Current remaining performance obligation ended the second quarter at approximately $12.1 billion, an increase of 23% year-over-year, 25% in constant currency.
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